Is now a good time to refinance student loans?
If you have federal student loans it might not make sense to refinance your loans at this time. As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed by Congress on March 27th, most federal student loan borrowers will receive a six-month reprieve from making payments. Additionally, interest won’t accrue during that time and there won’t be any impact to your credit score for skipping these payments. Contact your lender directly to find out if your loans qualify for payment relief.
But what if I have private student loans?
If your student loans are with a private lender and not eligible for government deferment or forgiveness, you might be able to save a lot of money by refinancing your loans. Today’s interest rates are among the lowest in history and there’s never been a better time to explore your options. If you want to lower your monthly payments, pay off your loan faster, or reduce the overall interest you pay over the life of your loan, refinancing could be the way to go. If you would like to speak with a Student Loan Refinance Specialist please call us at 1.888.422.5680.
What is the difference between fixed rate and variable rate?
When you choose a fixed rate, your rate and payment will be the same every single month during the life of your loan. Variable rate loans, in contrast, will fluctuate over time and that can make it difficult to predict what your payment will be. Variable rates are often advertised as lower that fixed, but remember they can go up at any time. For peace of mind and long-term planning, it is often better to go with the lowest fixed rate possible.
What if I have a loan with First Tech and I cannot make a payment because I am experiencing financial hardship?
If you think you will not be able to make loan payments, please contact us right away at 855-855-8805 so that we can explore all the options with you. For information about requesting a Loan Modification or an Emergency loan please visit https://www.firsttechfed.com/articles/updates/financial-care
Where can I get more information about the CARE act and federal loan benefits?
Here are three helpful government websites with more detailed information about student loans, payment suspension and the CARES Act.
When you’re ready to refinance your student loans, consider First Tech. We know that “the struggle is real” when it comes to student loan debt, and our goal is to help you find a loan solution that fits your budget and financial goals. If you would like to speak with a Student Loan Specialist please call us at 1.888.422.5680. We’re here for you.